Reappointed Powell "Committed to Blocking Inflation and Maximizing Employment"

Biden and Powell Speak with One Voice on Blocking Inflation
Biden: "Powell Will Attack Inflation from a Position of Strength"
Yellen Also Expresses Support for Blocking Inflation

[Asia Economy New York=Special Correspondent Baek Jong-min] U.S. President Joe Biden expressed expectations that Federal Reserve (Fed) Chair Jerome Powell will limit the rise in inflation during his second term. This move is interpreted as an acknowledgment that his political fate depends on Powell's ability to curb inflation. Chair Powell also expressed his determination to use all available tools to control inflation.

On the morning of the 22nd (local time), President Biden announced Powell's reappointment, and in the afternoon, he delivered a speech at the White House alongside Chair Powell and Vice Chair nominee Lael Brainard, expressing his expectations for the next Fed leadership.

Jerome Powell, Chair of the Fed (center), is speaking about President Joe Biden's announcement of his re-election bid.

President Biden showed familiarity by calling Chair Powell by his nickname, "Jay." He praised him, saying, "Jay helped stabilize the market and put the economy on a solid recovery path last year with steady and resolute leadership amid the financial market panic and massive unemployment caused by COVID-19."

President Biden also directly explained why he reappointed Powell, a Republican, rather than a Democrat. He said, "Because of our economy's tremendous potential and uncertainties, the Fed's stability and independence are necessary," adding, "At times like these, we need steady and proven principle-based Fed leadership." He demonstrated his absolute trust in Chair Powell, showing a willingness to overcome the economic crisis through bipartisan cooperation.

President Biden then defined Chair Powell's mission as easing inflation. He emphasized, "We are in a position to attack inflation from a position of strength, not weakness."

Chair Powell responded by pledging to fulfill his mission as an "inflation fighter." He said, "I have the opportunity to serve the American people again during this special time," adding, "I understand that rising inflation particularly harms households struggling with price increases. The Fed will use all tools to support the economy and labor market and prevent high inflation from becoming entrenched."

Treasury Secretary Janet Yellen also expressed expectations for inflation response and maximum employment regarding Chair Powell's reappointment.

In a statement, Secretary Yellen said, "Chair Powell and the Fed's leadership have helped the U.S. economy recover from the health and economic crises caused by COVID-19," and expressed hope that "our economy will benefit under his management."

Secretary Yellen also welcomed Lael Brainard's nomination as Fed Vice Chair, saying, "She is a respected economist with many years of experience who has played an important role in the nation's recovery."

She added, "I will support a strong and independent Fed in achieving the two goals of price stability and maximum employment."

This content was produced with the assistance of AI translation services.